Question-and-Answer Session
Operator
(Operator Instructions) Our first question is from John Diffendal from BB&T Capital Markets. Please go ahead.
John Diffendal - BB&T Capital Markets
Good afternoon. I wonder if you could help us with the recent restructuring moves you made. I think you mentioned the 20% layoff on the motor home side and 15% travel trailers. I know there will be, as you say, costs associated from that but what would you see as sort of the go-forward benefits in terms of either fixed cost taken out or utilization rate improvement? Just maybe talk about what that will deliver to the bottom line, these recent moves.
Paul C. Eskritt
As far as a going forward run-rate, much of our layoffs are related to factory hourly workers. We did have some office reductions in that, so I think the value of the run-rate at the RV level is probably on an ongoing basis probably $0.5 million a quarter total.
John Diffendal - BB&T Capital Markets
And I guess, turning to MH just for a second, my second and only other question, I guess we’re waiting whether the housing bill will emerge and even be signed. I just want to get your thoughts on that, particularly in terms of what -- if title one I guess is buried within here. We’ve been waiting since before Thanksgiving for it, but any thoughts you have on that?
And then secondly I guess HUD recently approved a pretty big $350 million grant for Mississippi that could be important. Are you looking to participate with that? What are you hearing about that program?
Charles E. Lott
As far as the $350 million grant, we are actually not hearing much out of that. I suspect that some of the manufacturers that have been participating in the MEMA production units for the last six months or so are maybe a little closer to that than we are because we were not participating in the MEMA.
As far as the title one, I think our entire industry believes that the FHA reform could significantly help us. I’ve heard numbers anywhere from 10% to 20% thrown around and by some of the industry people that I believe and have a lot of faith in, so it could be significant for us, especially with the conditions as they are today.
John Diffendal - BB&T Capital Markets
Who other than Cavalier was participating on MEMA? Do you know -- remember that off the top of your head, Charlie?
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